Parker Hannifin Earnings Cheat Sheet: Record Quarterly Earnings Per Share

S&P 500 (NYSE:SPY) component Parker Hannifin Corporation (NYSE:PH) reported net income above Wall Street’s expectations for the third quarter. Parker Hannifin Corporation manufactures motion and control technologies and systems, including electromechanical controls, fluid power systems and related components.

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Parker Hannifin Earnings Cheat Sheet for the Third Quarter

Results: Net income for Parker Hannifin Corporation rose to $279.6 million ($1.68/share) vs. $153.9 million (94 cents/share) in the same quarter a year earlier. A rise of 81.7% from the year earlier quarter.

Revenue: Rose 23.9% to $3.24 billion YoY.

Actual vs. Wall St. Expectations: PH beat the mean analyst estimate of $1.55/share. Estimates ranged from $1.46 per share to $1.60 per share.

Quoting Management: “Our third quarter performance reflects the continued strength that we see across our end markets and regions and our ability to leverage that strength into higher operating margins and record quarterly earnings per share,” said Chairman, CEO and President Don Washkewicz. “Customer orders also increased significantly in the quarter. All segments reported a double-digit increase in sales and order levels.”

Key Stats: The company has enjoyed double-digit year-over-year revenue growth for the past five quarters. Over that span, the company has averaged growth of 21.9%, with the biggest boost coming in the first quarter when revenue rose 26.5% from the year earlier quarter.

Last quarter marked the fifth consecutive quarter of gross margins expanding as the company’s gross margin expanded 2.9 percentage points to 24% from the year earlier quarter. Over that span, margins have grown on average 4.2 percentage points per quarter on a year-over-year basis.

The company has now seen net income rise in three-straight quarters. In the second quarter, net income rose more than twofold and in the first quarter, the figure rose more than threefold.

Competitors to Watch: Actuant Corporation (NYSE:ATU), Crane Co. (NYSE:CR), Sun Hydraulics Corporation (NASDAQ:SNHY), Omega Flex, Inc. (NASDAQ:OFLX), IMI plc (IMI), and Eaton Corporation (NYSE:ETN).

Today’s Performance: Shares of PH are trading at $92.78 as of April 27, 2011 at 10:32 AM ET, down over 5% from the previous close.

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